The penalty calculation involves two steps:

Step 1

We first calculate using this formula: 2% x 1/A x B x C

Where:
A = Number of days in the month
B = Amount of unpaid levy
C = Number of days the levy is overdue in that month

Step 2

We then determine the final penalty as follows:

• If the amount from step 1 is more than $20, this amount will be the final penalty.
• If the amount from step 1 is less than $20, the final penalty will either be $20 or 30% of the unpaid levy, whichever is less.

Your levy of $300 for January 2024 is due on 19 February 2024 and you paid on 5^th March 2024.

Note: Though the levy is due on 19 February 2024, the penalty applies from 1 February 2024.

Step 1: Initial calculation

	A (Days in the month)	B (Amount of unpaid levy)	C (Days late)	Calculated amount
February 2024	29	$300	29	2% x 1/29 x $300 x 29 = $6
March 2024	31	$300	4	2% x 1/31 x $300 x 4 = $0.77

Total initial calculated amount: $6 + $0.77 = $6.77

Step 2: Determine the final penalty

Since $6.77 is less than $20, we compare:

• $20
• 30% of unpaid levy: $90 (30% of $300)

Final penalty: $20 (the lesser of $20 and $90)

This information is sourced from MOM